Things are looking pretty good in Santa Clara, California
these days. Intel today announced that its third quarter revenue reached new
records as result of its strong processor portfolio.

The company recorded revenue of $10.1 billion USD -- an
increase of 15 percent from Q3 2006. Operating income was also up 64 percent
year-over-year to $2.2 billion USD, while net income increased 43 percent to $1.9
billion USD.

"A combination of great products, strong and growing
worldwide demand, and operational efficiency from our ongoing restructuring
efforts led to record third-quarter revenue and a 64-percent year-over-year
gain in operating income," said Paul Otellini, Intel's President and CEO.
"Looking forward, we see each of these elements continuing to improve into
the fourth quarter. We are very pleased with the results and optimistic about
our business."

Intel reports that its microprocessor set new records during
the quarter while the average selling price (ASP) remained relatively flat.
Intel shipped more than two million quad core processors during Q3.

In addition, chipset and flash memory sales also set new
records during the quarter, while motherboard shipments were down.

Intel's third quarter was quite profitable and it expects to
record revenue of $10.5 billion USD to $11.1 billion USD during the fourth
quarter. The company will have help thanks to its new 45nm-based Penryn desktop/server processors
which are due to launch November 12.

Intel’s good fortunes during the quarter still weren’t
enough to stop job cuts. The company announced in late September that it would
cut 10 percent of its IT staff worldwide to “stay agile and stay efficient."

"If you look at the last five years, if you look at what major innovations have occurred in computing technology, every single one of them came from AMD. Not a single innovation came from Intel." -- AMD CEO Hector Ruiz in 2007